Which makes it easier for a cartel to operate effectively over time?
A. The number of substitutes for the cartel's product increases.
B. Demand for the cartel's product becomes more elastic.
C. Each member firm observes the pricing and output decisions of other firms in the cartel.
D. Demand for the cartel's product decreases.
Answer: C
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In the Interest Parity Condition, Rt - R t = ( - Et)/Et + xt, where Rt - R t is the interest rate differential and ( - Et)/Et is the expected change in the exchange rate, what does xt stand for if it potentially is a market efficient difference
between the two? A) market inefficiency B) risk premium C) forecast error D) tracking error E) excessive volatility
Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.
Figure 23.1Refer to Figure 23.1. This household consumes $2,000 at an income level of
A. $3,000. B. $2,275. C. $2,000. D. $1,840.
Refer to the information provided in Table 20.5 below to answer the question(s) that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 20.5
Refer to Table 20.5. In Vietnam, the opportunity cost of
A. a lb. of tea is 1/8 of a bushel of cashews. B. a lb. of tea is 2/15 of a bushel of cashews. C. a bushel of cashews is 4/3 of a lb. of tea. D. a lb. of tea is 40 bushels of cashews.
A natural monopoly under rate of return regulation has an incentive to
A) pad its costs. B) produce more than the efficient quantity of output. C) charge a price equal to marginal cost. D) maximize consumer surplus.